on 02-01-2012 3:49 PM
I need some assistance with SAP withholding tax config. Our company will start trading in Nigeria soon where withholding tax is applicable on all local services. Problem is that we cannot claim input vat on these local services and the vat is therefore expensed to the P&L. However, the withholding tax base needs to be Vat exclusive. How do I config the "revised" withholding tax base amount?
Your assistance is much appreciated. Please advise if you require additional info.
Hi,
Just put 95.25% in the Percentage subject to Tax in EWT code defenition, this will resolve your issue totally and would get the accounting entry as desired.
Note: Please make sure that, you have not selected the indicator Calculate taxes on net amount in FB00.
NO VAT config is required too.
REgards,
Srinu
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi,
Go to bellow link
Thanks,
Raviteja
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Thanks Raviteja. I also found this thread and config notes. It has assisted me with most of the WHT config but I still need to resolve the issue to calculate WHT on the Vat exclusive amount. Selecting NET Amount in tax type is not yet working.
Problem is that we post the vat amount to the expense account (no vat code) as we annot claim the vat. However the WHT need to exclude the Vat
Hi
Sap wont work based on your assumptions
I think you didnt tested properly as per the forum guidelines
How the system will know that Consulting fee should be 100 or 105 if you are not using a tax code
If you want post an entry in sap like below
Consulting Fees R105
EWT @ 10% (on Vat exclusive base) R 10
Pay Vendor R95
You have to create WHT with Net amount selected and NVV vat code
Reg
Vishnu
Dear Sonja,
into the WT type definition You can ask for excluding the vat from the WT base amount calculation.
You can define the WT BASE amount as Gross, net and so on.
If this information does not help You,
please kindly give me an example of what You need the System to calculate.
Do You need the WT calculation at the invoice time or at the payment time?
The example You reported before it is not so clear to me. What does it mean pay to vendor?
Thanks.
Mauri
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Hi Mauri
I'm in the process of reviewing NVV Vat code setup as suggested by Vishnu so not sure yet if problem will be resolved.
The business would prefer WT at invoice posting
Example:
Vendor invoice received shows consultings fees of R1000 and 5 % vat of R50 = Invoice total of R1050. Nigeria tax laws does not allow us to claim the input vat so it is expensed
Current SAP Postings
DR Consultings fees R1050(no vat code postings)
CR Withholding tax R105
CR Vendor R 945
SAP posting required
DR Consultings fees R1050
CR Withholding tax R100 (10% of Vat exlusive amount)
CR Vendor R 950
Hi,
Please confgure a new EWT type, where in defenition screen, you need to choose Net Amount under Calculation->Base Amount
IMG->FA->FAGS->WT->EWT->Calculation->WHT type->Define WHT type for Invoice posting
IMG->FA->FAGS->WT->EWT->Calculation->WHT type->Define WHT type for payment posting
Regards,
Srinu
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.
Thanks for your comment Srinu but the prblem is that because we cannot claim the input vat, there is no vat posting and the full amount is posted to expense account. However, Vat still needs to be excluded from EWT base amount
Example
Vendor Invoice shows:
Consulting fees R100
Vat 5% R5
Total = R105
SAP Posting required:
Consulting Fees R105
EWT @ 10% (on Vat exclusive base) R 10
Pay Vendor R95
Please assist in how config shoul be done.
Thanks
Sonja
User | Count |
---|---|
89 | |
7 | |
6 | |
3 | |
3 | |
3 | |
3 | |
3 | |
3 | |
2 |
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.